Record-breaking momentum pauses, mortgage rates rise
After matching or breaking record lows in 13 of the past 14 weeks, mortgage rates reversed course and increased week-over-week, Freddie Mac said in its weekly mortgage report.
Freddie Mac’s Primary Mortgage Market Survey for the week ending August 2, 2012 revealed increases in average mortgage rates for three of four mortgage types surveyed.
Average rates for 30-year fixed-rate mortgage rose to 3.55 percent after averaging 3.49 percent one week earlier, while shorter-term 15-year fixed-rate mortgages averaged 2.83 percent, up from 2.80 percent the previous week.
One year ago at this time, 30-year fixed mortgages averaged 4.39 percent, while 15-year fixed mortgages averaged 3.54 percent, Freddie Mac said.
Adjustable-rate mortgages (ARMs) showed mixed results in this latest survey.
Average rates for 5-year ARMs rose slightly to 2.75 percent, up from 2.74 percent the previous week, but 1-year ARMs fell slightly to an average rate of 2.70 percent after averaging 2.71 percent one week earlier.
Last year at this time, 5-year ARMs averaged 3.18 percent and 1-year ARMs averaged 3.02 percent.
“Recent announcements of additional debt relief for the Eurozone and mixed domestic economic indicators added upward pressure on Treasury yields as well as mortgage rates this week,” Frank Nothaft, vice president and chief economist at Freddie Mac, said in a statement.
Nothaft also made note of recent mixed housing data.
“The S&P-500 Case Shiller® 20-City Composite Index rose for the fourth consecutive month in May with 18 of the cities experiencing positive growth. Nonetheless, pending home sales fell 1.4 percent in June, below the market consensus forecast of a 0.3 percent increase, and May’s figure had a downward revision,” he said.